SERENGETI Breweries Ltd (SBL) says a spirits distribution agreement entered between the firm and Diageo/East African Breweries (EABL) is a separate matter from the ongoing tribunal hearing over beer distribution agreement between  SABMiller and Tanzania Breweries Ltd (TBL).

The SBL Board of Directors Chairman, Mark Bomani, made the remarks during launching of the spirits distribution agreement between SBL and EABL/Diageo on Tuesday night in Dar es Salaam.

Remarked Bomani: “What is being launched today is a spirits distributorship. It has nothing to do with the beer business which is a separate issue being dealt with separately.”

Adding: “As a matter of fact, TBL who have been consulted through SABMiller about this agreement have confirmed that they have no objection to this agreement.”

He said the main purpose behind the agreement was to strengthen the base of the two partners in the distribution of spirits in East Africa, especially following signing of the common market.

“We at SBL can only reiterate our determination to be a major player not only in the beer business but also now in the spirits business in the region,” Bomani said.

The guest of honour at the event, East African Cooperation Minister, Dr Diodorous Kamala, said he appreciated the fact that there were consultations between SABMiller and TBL regarding the agreement.

“It is in this regard, that I wish to encourage similar inter-firm arrangements and collaborations in respect of distribution of products such as the Tanzania Distillers' Konyagi in the East African Community (EAC) market including the Kenyan market,” said the minister.

Dr Kamala noted that the regional integration initiatives in the 1960s became moribund within a short period because of the inward looking approach in terms of industrialization.

“We should be careful not to repeat that. The domestic market should be used as a transitional stage and launching pad towards effective participation in the global market,” he remarked.

The EABL Managing Director for Venture, Patricia Ithau, said the investment will see SBL investing in greater warehousing and storage facilities to service the distribution mechanics of the products.

She said the agreement would also generate employment opportunities both directly and indirectly.